AK&M Rating Agency presents an up-to-date ranking of guarantee institutions providing infrastructure support to small and medium-sized businesses in Russian regions. Our review is based on the guarantee funds’ performance in 2015.
As usual, the basic background information was directly provided by the guarantee institutions agreeing to be officially ranked by AK&M Rating Agency. Besides, we used additional data accumulated from public sources (the Federal State Statistics Service, the Bank of Russia, etc.).
According to the existing comparative analysis methodology, AK&M Rating Agency ranked the guarantee institutions by an integral index factoring in both the funds' efficiency in attracting off-budget resources for the financing of SME businesses in the region and the exposure to potential risks related to the possible liquidity loss or financial destabilization of the guarantee institution.
In 2015, Russian guarantee funds had to operate amidst a continuing stagnation in the segment of small and medium-sized businesses in the wake of a general macroeconomic decline. A characteristic feature of the sustained recession is a 9.3% contraction in lending to small businesses, while the overdue debt percentage soared almost twice (from 8.0% to 14.8%).
This has affected, even though more implicitly, the performance of guarantee institutions. In particular, the consolidated surety portfolio of the ranking participants decreased by more than 7% in 2015. The guarantee capital multiple continued to slide reaching a mere 108% across the selected funds against 121% the year before, an evidence of the guarantee funds’ extremely low efficiency in using budgetary resources to support small and medium-sized businesses.
Ranking of regional guarantee funds
(based on 2015 results)
|Ranking position||Region||Regional guarantee institution (fund)||Integral index||Fund performance estimation criteria||Region estimation criteria||Previous ranking position|
|Surety portfolio, million RUB||Guarantee capital, million RUB||Loss ratio (relative)||Arrears on SME loans||Region position in AK&M 2014 creditworthiness ranking|
|1||Moscow||Fund of Small Business Credit Assistance of Moscow||3.175||7,436.8||8,936.0||8.25%||14.88%||1||1|
|2||St. Petersburg||Nonprofit organization "Small-scale business crediting assistance fund"||1.732||2,758.0||3,170.1||2.61%||17.10%||7||2|
|3||Novosibirsk region||Small and Medium size Business Development Fund of Novosibirsk region||1.538||2,308.3||1,300.0||1.37%||14.54%||24|
|4||Rostov region||Non-profit organization "Guarantee fund of Rostovskaya oblast"||1.358||2,402.2||1,872.3||4.03%||13.86%||20||5|
|5||Stavropol Krai||State unitary enterprise "Guarantee Fund for Supporting Small and Medium-sized Businesses of Stavropol Krai"||1.238||2,223.2||1,006.9||4.80%||9.05%||38||4|
|6||Khanty-Mansi autonomous area – Yugra||Entrepreneurship Support Fund of Yugra||1.063||1,528.3||1,979.9||3.32%||10.64%||2||3|
|7||Sverdlovsk region||Sverdlovsk Regional Business Support Foundation||1.035||1,423.3||865.1||0.63%||13.94%||14||7|
|8||Chelyabinsk region||Nonprofit organization "Small Business Lending Assistance Fund of Chelyabinsk region"||0.934||1,573.1||889.2||3.90%||12.26%||18||6|
|Primorsky Krai||Nonprofit organization “Guarantee Fund of Primorsky Krai”||0.710||1,168.8||830.5||4.48%||9.70%||15|
|Sakha Republic (Yakutia)||Nonprofit organization "Small Business Development Fund of the Sakha Republic (Yakutia)"||0.560||1,082.0||380.6||4.61%||8.29%||28||13|
|10||Ryazan region||GFRO (Nonprofit organization "Guarantee Fund of Ryazan region" )||0.540||905.0||431.0||2.91%||12.58%||41||14|
|11||Penza region||Guarantee Fund of Penza region OJSC Guarantor||0.470||805.6||391.7||3.72%||8.56%||65||12|
|12||Vladimir region||Fund of development of small and average business of Vladimir region (FDSA)||0.436||669.2||464.7||2.42%||12.95%||19||15|
|13||Republic of Buryatia||Guarantee Fund lending assistance to small & medium-scale businesses of the Republic of Buryatia||0.395||763.0||342.0||3.65%||15.55%||51||9|
|14||Udmurt Republic||Guarantee Fund for support of lending to small and medium-sized businesses of the Udmurt Republic||0.382||585.0||448.0||1.70%||11.34%||56||17|
|15||Tula region||Nonprofit organization "Tula regional Small Business Support Fund "||0.376||820.4||586.4||4.17%||22.22%||17||10|
|16||Belgorod region||Belgorod Guarantee Fund for Assistance to Lending||0.362||481.1||359.8||0.17%||10.26%||42||41|
|17||Tambov region||Tambov regional state unitary enterprise "Fund for Support of Lending to Small and Medium-sized Businesses of Tambov region"||0.362||521.2||415.4||2.96%||5.29%||46||20|
|18||Voronezh region||Guarantee fund of the Voronezh region||0.346||530.0||295.0||3.55%||8.23%||29||16|
|19||Zabaykalsky Krai||Limited liability company "Guarantee Fund of Zabaykalsky Krai"||0.324||949.6||256.5||2.51%||6.60%||67||19|
|20||Samara region||Joint-stock Company “Guarantee Fund of Samara region”||0.311||577.0||435.0||4.40%||15.04%||16||21|
|21||Kaliningrad region||Guarantee Fund of the Kaliningrad region||0.287||458.0||368.8||1.42%||14.32%||49||27|
|22||Amur region||Nonprofit organization "Fund for Support of Lending to Small and Medium-sized Businesses of Amur region"||0.282||393.3||215.1||1.57%||6.53%||63||37|
|23||Sakhalin region||Autonomous institution "Business Development Assistance Fund"||0.277||411.7||267.6||2.04%||17.51%||4||31|
|24||Ulyanovsk region||Nonprofit organization "Ulyanovsk Regional Surety Fund"||0.245||376.1||297.5||2.30%||10.48%||43||22|
|25||Altai Krai||Nonprofit organization "Altai Guarantee Fund"||0.202||366.4||638.4||0.35%||16.15%||31||26|
|26||Chuvash Republic||Autonomous nonprofit organization "Guarantee Fund of the Chuvash Republic"||0.179||337.0||437.9||4.82%||8.5%||45||39|
|27||Kostroma region||State enterprise "Guarantee Fund for Business Support of Kostroma region"||0.176||302.0||187.0||2.22%||12.63%||69||29|
|28||Kamchatka Krai||Guarantee Fund for Business Development of Kamchatka Krai||0.173||379.4||336.6||1.90%||25.23%||58||33|
|29||Smolensk region||Nonprofit organization "Smolensk Regional Business Support Fund"||0.163||594.1||645.2||2.06%||40.39%||68||23|
|30||Kemerovo region||The State Fund of the Kemerovo Region for Business Support||0.161||335.6||453.6||1.79%||22.14%||40||24|
|31||Altai Republic||OJSC Housing Mortgage Lending Agency of the Altai Republic||0.148||389.2||221.4||5.67%||16.16%||78||25|
|32||Republic of Mordovia||Autonomous institution "Guarantee Fund of Credit Support of the Republic of Mordovia"||0.143||340.2||201.9||5.38%||15.39%||72||45|
|33||Krasnodar Krai||Nonprofit organization “Guarantee Fund for Supporting Small Businesses of Krasnodar Krai”||0.136||339.1||571.0||4.00%||19.12%||35|
|34||Vologda region||Noncommercial partnership " Agency of city development "||0.128||278.1||243.8||3.06%||22.28%||50||49|
|35||Republic of Dagestan||Fund for Support of Lending to Small and Medium-sized Businesses of the Republic of Dagestan||0.124||316.2||359.9||5.22%||16.24%||77||44|
|36||Saratov region||OJSC Guarantee Fund for Small Businesses of Saratov Region||0.117||203.3||236.0||3.29%||10.87%||57||47|
|37||Krasnoyarsk Krai||OJSC Krasnoyarsk Regional Agency for Assistance to Small and Medium-sized Businesses||0.114||269.8||552.8||4.06%||13.03%||21||28|
|38||Tver region||Nonprofit organization "Fund for Support of Lending to Small and Medium-sized Businesses of Tver region"||0.110||276.0||360.6||3.15%||25.06%||54||30|
|39||Leningrad region||JSC Agency for Supporting Small and Medium-sized Businesses||0.105||334.0||317.6||3.16%||38.98%||10||38|
|40||Republic of Crimea||State unitary enterprise “Crimean Guarantee Fund of Business Support”||0.101||123.5||99.6||0.00%||7.82%|
|41||Kaluga region||Nonprofit organization "State Business Support Fund of Kaluga region"||0.063||218.0||541.2||7.11%||9.70%||37||46|
|42||Kursk region||Association “Business Support Center – Microfinance Institution of Kursk region”||0.055||97.8||139.7||4.93%||6.51%||23||58|
|43||Republic of North Ossetia – Alania||Guarantee Fund of the Republic of North Ossetia-Alania||0.048||138.0||153.0||0.00%||32.04%||82||50|
|44||Republic of Khakassia||Nonprofit organization "Guarantee Fund of the Republic of Khakassia"||0.030||48.0||68.0||0.22%||11.32%||66||55|
|45||Republic of Adygea||Autonomous institution of the Republic of Adygea "Small Business Development Agency"||0.021||62.8||127.9||7.45%||6.09%||48||54|
|46||Pskov region||Autonomous nonprofit organization "Fund for Guarantees and Business Development of Pskov region"||0.017||80.2||150.3||6.07%||29.28%||70||53|
|47||Komi Republic||OJSC "Guarantee Fund of the Komi Republic"||0.014||30.0||39.9||1.90%||24.65%||27||52|
|48||Sevastopol city||Nonprofit organization "Guarantee Fund for Supporting Small and Medium-sized Businesses in Sevastopol city”||0.007||12.0||26.5||0.00%||5.96%||60|
|49||Magadan region||Nonprofit organization "Magadan Region Fund for Small and Middle Business Support"||0.001||21.8||184.3||13.71%||18.07%||39||57|
|50||Tyva Republic||Nonprofit organization "Fund for Business Support of the Tyva Republic"||0.000||3.0||26.7||0.00%||11.09%||76||59|
Note: For the guarantee fund of Stavropol Krai, we provide an indicative value of the surety portfolio as of October 1, 2015.
*) The Guarantee Fund of Primorsky Krai was included in the ranking following its official publication
Most of the changes in the ranking arise from a shorter list of funds ranked (50 funds against 60 the year before).
Just as we expected, almost all ranking leaders maintained their positions. The guarantee institutions of Russia’s two capitals were predictably on top of the ranking, despite their lower integral indices due to a contraction in the surety portfolios and an increase in the balance loss ratio.
Speaking about the advancement leaders, of special note is Belgorod region (which soared from the 41st to the 16th position owing to a more than twofold growth of the surety portfolio and an extremely low loss ratio of 0.17%), the guarantee institutions of Amur and Vologda regions which advanced 15 positions in step, as well as the Association “Business Support Center – Microfinance Institution of Kursk region” which moved 16 positions upwards as its surety portfolio increased by 116%.